FINC 423 Advanced Corporate Finance Fall 2023 2022 Book Value Balance Sheet for Jordan Inc Cash...

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FINC 423 Advanced Corporate Finance Fall 2023 2022 Book Value Balance Sheet for Jordan Inc Cash Accounts Recievable Inventories Current Assets Fixed Assets Total Assets Notes Payable Accounts Payabale 2022 863,400 1,943,250 1,551,850 4,358,500 11,863,750 16,222,250 875,000 2,767,750 Current Liabities 3,642,750 Long Term Debt 3,984,650 Non Dent Long Term Liabilities 1,443,050 Total Liabilities 9,070,450 Equity 7,151,800 Total Liabilities and Equity 16,222,250 Show Image Transcript re are 2 steps to solve this one. Expert-verified 100% (1 rating) 1st step All steps Answer only Share Step 1 The market value of the firm's fixed assets under these circumstances is $38,642,954. Here is how we can calculate it: Market value of equlty = Number of shares outstanding Price per share = 375,800 shares $98.54 per share = $37,009,136 Market value of total assets = Market value of equity + Market value of debt Assuming that the market values of the current asset and liability accounts, and the long-term debt account are the same as their book values, and that the market value on the non-debt long-term liabilities is essentially $0, we can conclude that the market value of total assets is equal to the book value of total assets. Book value of total assets = Book value of equity + Book value of debt Market value of fixed assets = Market value of total assets - Market value of current assets - Market value of debt Assuming that the market values of the current asset and liability accounts are the same as their book values, we can conclude that the market value of fixed assets is equal to the book value of fixed assets. Book value of fixed assets = Total assets - Current assets - Non-debt long-term liabilities - Debt Market value of fixed assets = $40,300,232 - $1,657,278 - $0 - $0 = $38,642,954 FINC 423 Advanced Corporate Finance Fall 2023 2022 Book Value Balance Sheet for Jordan Inc Cash Accounts Recievable Inventories Current Assets Fixed Assets Total Assets Notes Payable Accounts Payabale 2022 863,400 1,943,250 1,551,850 4,358,500 11,863,750 16,222,250 875,000 2,767,750 Current Liabities 3,642,750 Long Term Debt 3,984,650 Non Dent Long Term Liabilities 1,443,050 Total Liabilities 9,070,450 Equity 7,151,800 Total Liabilities and Equity 16,222,250 Show Image Transcript re are 2 steps to solve this one. Expert-verified 100% (1 rating) 1st step All steps Answer only Share Step 1 The market value of the firm's fixed assets under these circumstances is $38,642,954. Here is how we can calculate it: Market value of equlty = Number of shares outstanding Price per share = 375,800 shares $98.54 per share = $37,009,136 Market value of total assets = Market value of equity + Market value of debt Assuming that the market values of the current asset and liability accounts, and the long-term debt account are the same as their book values, and that the market value on the non-debt long-term liabilities is essentially $0, we can conclude that the market value of total assets is equal to the book value of total assets. Book value of total assets = Book value of equity + Book value of debt Market value of fixed assets = Market value of total assets - Market value of current assets - Market value of debt Assuming that the market values of the current asset and liability accounts are the same as their book values, we can conclude that the market value of fixed assets is equal to the book value of fixed assets. Book value of fixed assets = Total assets - Current assets - Non-debt long-term liabilities - Debt Market value of fixed assets = $40,300,232 - $1,657,278 - $0 - $0 = $38,642,954